HomeMy WebLinkAbout1998/08/12-Minutes-HEDC Highlights of the
Wednesday, August 12, 1998
Economic Development Committee Meeting
Standing Items
Becky Haskin was appointed to replace Board Member Cathy Hirt on the Economic Development
Committee.
H. New Business
A. Consideration of Convention and Visitors Bureau Contract
Mike Groomer, Assistant City Manager made a presentation to the committee to consider a renewal
contract with the Convention and Visitors Bureau (CVB).
The proposed contract would become effective October 1, 1998. The term of the new contract is 5
years, with the ability to extend the contract annually thereafter by mutual consent for 5 successive
additional one-year terms.
Under the new contract:
• The CVB will receive 55% of the gross Hotel Occupancy Tax (HOT) revenues annually as projected
by the City's Budget Office for their base budget (Section 2.1). November 1 will represent a prior
year settlement period, if the monthly payments based on the budget estimates exceed or were short
of actual collections (Section 2.3).
• The gross HOT revenues subject to allocation to the CVB do not include the 2% increment over 7%,
which is dedicated by law to convention center improvements (Section 2.2), or any amounts
generated by the renovated Blackstone Hotel through calendar year 2007, because those revenues are
used to fund the Facilities and Maintenance Agreement for the preservation, maintenance and
restoration of the Blackstone (Section 2.8).
• A Special Public Facilities Fund (SPFF) is created to replace the existing Buy Down Fund and
Equestrian Marketing Fund. The level at which the SPFF is funded is determined each year by the
City as part of the budget process, based upon projected needs. Use of SPFF funds requires approval
by the City Council and the CVB. This fund will allow for adjustment to facility rents to compete
for priority events (Section 1.2).
• The balance of HOT revenues are available to the City Council for funding of other eligible
activities.
Chairman Wentworth asked if the term of the contract has been the same every year. Mr. Groomer
stated the last 2 agreements have been 5 year contracts.
Board Member Haskin motioned to move forward with recommendation to Council. Chairman
Wentworth seconded and recommendation will be made at the August 18, 1998, City Council Meeting,
Doug Harman, CVB President, said he would also recommend approval to the CVB Board. 10 or so
attendees were present to represent and support the CVB.
Economic Development Committee Meeting
August 12, 1998
Page 2
B. Discussion of Tax Delinquent Property Foreclosure Process
Delayed to next meeting.
III. Adjourn
The meeting adjourned at 2:05 p.m.